Yo Pit Crazies,
Nvidia Inc. (Ticker: NVDA) missed earnings pretty dramatically yesterday.
The miss was so big and the multiple was so high, I would have guessed the tech company would have been down 10% or more. It is not.
Less than $8, which really is nothing.
The signal from most companies this cycle is lower earnings. Not a recession yet but the earnings are not growing.
Investors are making a heavy bet on “tomorrow.”
As in, Tomorrow the sun will come out and things will be better.
The take away from the current earnings season is that things are just not great right now out there.
That is what folks are betting on now. Will the Covid relief rally (fuelled by no good news) continue?
As odd as it sounds, I say …
Friday Sets Up for a Big S&P move – UP
That may sound crazy, but that is what I see, and I will tell you why.
The White House for the third time this month just proposed or passed more fiscal stimulus to an already overheated inflation rate – and stocks rallied a bit.
That is not the stuff of Milton Friedman. While the SPX went up a touch, VIX made a low for the week.
Folks are behind on their utility bills and cell phone bills if the performance of AT&T Corp. (Ticker: T) is any indication.
Yet we rally.
There is 0 positive news, yet we rally.
I think Jerome Powell will stay the course at his 10 a.m. call on Friday and we will rally and VIX WILL DROP.
Welcome to the great reset. Government spending wins.
The Rundown
Capitol Gains
I closed a US Oil Trust (Ticker: USO) call calendar yesterday and that put me into an Oct call spread for Clean Energy Inc (Ticker: CLNE) for .15.
To Your Trading Success,
AG